Spain - Hospitality workers have a big deal - September 30, 2017

As a result of collective bargaining between the trade unions and the employers in hospitality, salaries in the Balearic hospitality sector will increase by 17% between 2018 and 2021. The deal will affect 137,000 people employed in this key sector of the regional economy, but has an impact far beyond the sector. In the booming tourism industry, a driver of economic growth and job creation, this should also lead to higher salaries. The agreed increase will be 5% in 2018, 5% in 2019, 3.5% in 2020, and 3.5% in 2021. This is well above the annual figure in the expiring 2014 collective bargaining deal that included an increase of 1.3% until August. The agreement also makes it harder to cut labour costs through subcontracting. Subcontractors are not only forced to ensure that their wages are the same as those specified in the agreement, but also have to comply with working hours and breaks.

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